Best Cheap Stocks to Buy for 2018 in India

Given the sluggish demand and global uncertainty daunting the Indian stock market, the investors are moving ahead with a great care.  Even the mid-cap and small-cap shares have been beaten hard during the recent stock market session, with many stocks fallen as much as by 36 percent since February, but there are some cheap stocks to buy.  

The index has fallen down spirally by 0.31 percent or 31.70 points to 10,195.15 for the week ended March 16, thanks to the bank scams and fodder scams.

Cheap Stocks on the Rise

Taking the benefit of market correction, injected by local and global factors, there are some cheap stocks that are value picks. Let’s start with it!

Cheap Stocks that investors should remain sanguine about

Sanwaria Consumer Group (NSE: SANWARIA)

It is a FMCG company that manufactures and sells rice, edible oil, staple food products like pulses, sugar, soya chunks and wheat flour.

The sales records are improving the growth rate is consistent of 20.86% and promoters holdings have increased from 70.05% to 71.68%. All these factors indicate that company is yet to grow at a fast pace.

The scrip has jumped from Rs 2.55 on January 2,2017 to Rs 18.90 on 19 March, 2017, thanks to its recent announcement of its association with one of the most reputed swadeshi brand of India Patanjali.

Manaksia Steels Ltd. (NSE:MANAKSTEEL)

The company is engaged in offering coils, hot dipped galvanized steel, pre-painted profile sheets, and much more.

The people who have added this stock in their portfolio at regular intervals have found a good appreciation over the short time. The company has even got a nod for setting up its unit in Dubai.

The shares of Manaksia Steels have jumped from Rs 8.85 to Rs 30.45 during the period. The growing quarterly results stem from the fact that this company is worth investing for. In Dec 2017, the company has registered the profit of 118.78 crores in Sep 2017, it registered the profit of 104.68 crores.

Paramount Communication Ltd. (NSE:PARACABLES)

It is one of the leading wire and cable manufacturing company. Over the years it has enlarged its clientele list from government, institutional to private sector.

The company’s export is on a constant rise and its staggering growth rate points towards the fact it is a worthwhile investment.

The shares of Paramount Communication have jumped from 3.30 to Rs 13.25. The company has posted a profit of 127.9 million rupee for the quarter ended in June. It is a worthwhile stock to hold on.

Tech India Nirman Ltd. (NSE:TECHIN)

The Company is engaged in offering plant seeds for crops like mustard, egg plant cabbage and related supplements. The company supplies its products both internationally and in the domestic market.

The company is performing really well in its sector. With an impetus to rural sector in the budget, it is believed that the stock is worth holding for.

The shares of Tech India Nirman has gained by 242 Rs and  this indicates its positive future ahead. The company’s net worth is Rs 198.16 million and its liabilities for short term are Rs 84.69 million. The assets are worth Rs 273.02 million.  The current share price of the company is Rs 13.20

Magnum Ventures Ltd. (NSE:MAGNUM)

The company is one of the largest paper mill located in North India having an installation capacity of 85000 TPA.

The company has reported sales of Rs 72.95 crore and EPS of Rs 27.43. The company has recorded profit of Rs 212.54 crore in the last year.  The technical trend is bullish with current share price of Rs 11.55.

In the end, we would like to conclude that though these cheap stocks offer the high return, but as the market experts suggest that the risk-averse investors should avoid investing in the penny/cheap stocks.

These stocks are highly volatile in nature and have a tendency to gain or decline rapidly, which means that while you may have a chance of getting high returns, there is a high risk of losing the hard earned money too. In addition, the investors should be extremely careful while investing in speculation driven stocks.